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GlassFibreEurope Calls on EC to Safeguard European Manufacturing

GlassFibreEurope is calling on the European Commission (EC) to ensure that it safeguards the future of European manufacturing.

GlassFibreEurope, which represents the interests of glass fiber manufacturers in Europe, recently reinforced communications from several European industries calling on the European Commission (EC) to ensure that it safeguards the future of European manufacturing and not bend to demands from China to be granted market economy status (MES).

“Sectors like glass fiber are strategic for Europe’s future because new materials made with it are stronger and lighter than traditional materials like steel, aluminum and wood,” said Axel Jorns, secretary general of GlassFibreEurope. “Market Economy Status cannot be granted to China before it becomes a true market economy. The European Commission must stand up to Chinese overcapacities and dumping. All European industries, including glass fiber, face annihilation if China’s massive state-backed overcapacities are not contained by effective European trade defense measures, which will cease to be of use if China is granted MES.”

China is gaining global dominance in glass fibers, despite the lack of competitive advantage, through aggressive state planning, subsidies and overcapacity. China’s overcapacity is more than total EU consumption. Unfair competition from China has already caused considerable injury to European industry, with the loss of European factories and jobs in an important strategic sector. Since 2015, the European glass fiber sector has some protection from unfair Chinese predatory prices that were designed to seize EU market share, but if China is granted Market Economy Status in 2016, the survival of the European glass fiber sector would be threatened.

“The continued existence of effective EU anti-dumping measures will help avoid a situation where important European industries like the automotive and renewable sectors would become increasingly dependent on Chinese State-controlled glass fiber supply,” said Jorns. “The EU must reject China’s lobbying for Market Economy Status, and maintain Europe’s capability to impose effective antidumping measures in cases of such flagrant violations.”